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Characteristic Line and Security Market Line You are given the following set of data: Year 1 3 4 Historical Rates of Return NYSE Stock X

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Characteristic Line and Security Market Line You are given the following set of data: Year 1 3 4 Historical Rates of Return NYSE Stock X -26.5% -16.09 37.2 2.0 23.8 12.0 - 7.2 SO 72 20.5 18.8 30.6 5 7 16.5 Use a spreadsheet (or a calculator with a linear regression function to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places D. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stoox X and the NYSE. Do not round Intermediate calculations. Round your answers to two decimal places Stock X NYSE Average return Standard deviation, a C. Assume that the situation during years 1 to 7 is expected to prevail in the future C., TX - Fx.com the Marrug, and both o, anab, in the future will equal than past values). Also assume that Stodex is in equilibrium that is, it plots on the Security Marketune. What is the risk free rate? Do not round Intermediate calculations Round your awer to two decimal places Plot the Secunty Market Choose the correct graph The Cut graphis App Store d. Plot the Security Market Line Choose the correct graph The correct graph is Select A c 35 (8) 45 10 35 30 35 20 25 20 15 30 35 20 EST FOT 10 5 101 5 -05 0,5 1 1,5 2 2.5 3 3.4 B 151.53 354 -0% 0.5 11.5 2 2.54 D () 45 40 35 30 25 20 15 20 5 15 20 15 10 15 10 5 5 051 152 253 254 05 0.5 15 325 335 D () 45 40 35 30 15 10 5 0.5 1 1.5 2 2.5 3 3.5 4 6. Suppose you hold a large, well-diversified portfolio and are considering adding to that portfolio either Stock X or another stock, StockY, which has the same bota as Stock x but higher standard deviation of returns Stocks X and Y have the same expected returns: rupy - 10.6%. Which stock should you choose? In theory, you should as far as c Characteristic Line and Security Market Line You are given the following set of data: Year 1 3 4 Historical Rates of Return NYSE Stock X -26.5% -16.09 37.2 2.0 23.8 12.0 - 7.2 SO 72 20.5 18.8 30.6 5 7 16.5 Use a spreadsheet (or a calculator with a linear regression function to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places D. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stoox X and the NYSE. Do not round Intermediate calculations. Round your answers to two decimal places Stock X NYSE Average return Standard deviation, a C. Assume that the situation during years 1 to 7 is expected to prevail in the future C., TX - Fx.com the Marrug, and both o, anab, in the future will equal than past values). Also assume that Stodex is in equilibrium that is, it plots on the Security Marketune. What is the risk free rate? Do not round Intermediate calculations Round your awer to two decimal places Plot the Secunty Market Choose the correct graph The Cut graphis App Store d. Plot the Security Market Line Choose the correct graph The correct graph is Select A c 35 (8) 45 10 35 30 35 20 25 20 15 30 35 20 EST FOT 10 5 101 5 -05 0,5 1 1,5 2 2.5 3 3.4 B 151.53 354 -0% 0.5 11.5 2 2.54 D () 45 40 35 30 25 20 15 20 5 15 20 15 10 15 10 5 5 051 152 253 254 05 0.5 15 325 335 D () 45 40 35 30 15 10 5 0.5 1 1.5 2 2.5 3 3.5 4 6. Suppose you hold a large, well-diversified portfolio and are considering adding to that portfolio either Stock X or another stock, StockY, which has the same bota as Stock x but higher standard deviation of returns Stocks X and Y have the same expected returns: rupy - 10.6%. Which stock should you choose? In theory, you should as far as c

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